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Europe’s car market up 5.9% in July as BYD overtakes Tesla

© A. Krivonosov
Europe’s auto market rose 5.9% in July to 1.09m. BYD surged past Tesla in EV share, while VW and Renault grew. Electrified vehicles hit a record 59.8% of sales.
Michael Powers, Editor

Europe’s car market grew 5.9% in July, with sales reaching 1.09 million vehicles. Germany provided the main lift (+11.1%), offsetting declines in the UK, France and Italy.

The headline shift came in the EV race. Tesla’s share fell for a seventh straight month: sales dropped 40% and its slice shrank to 0.8%. Chinese brand BYD, by contrast, appeared in European tallies for the first time, surged more than 225% and captured 1.2% of the market, edging past its American rival.

Among European marques, Volkswagen and Renault led the way, up 11.6% and 8.8% respectively. Stellantis slipped 1.1%. Overall, electrified vehicles—hybrids, plug‑in hybrids and full EVs—accounted for a record 59.8% of registrations, up from 51.1% a year earlier.

For Europe’s carmakers, it’s a warning sign: Chinese brands, led by BYD, are tightening the squeeze on core markets. Major groups are already discussing new strategies and warn that the EU’s stringent climate goals could prove unachievable without serious losses.

The market is shifting at speed: not long ago Tesla set the tone, and now the momentum is swinging to BYD. The pecking order of Europe’s best‑sellers in 2025 will likely hinge on Chinese models, while European brands will have to compete not just on quality but on price as well.